Cynthia Lummis, a crypto proponent representing Wyoming in the United States Senate, has called on the U.S. Justice Department to consider charges against crypto exchange Binance following the terrorist group Hamas’ attack on Israel.
In an Oct. 26 letter to U.S. Attorney General Merrick Garland, Lummis and Arkansas Representative French Hill urged Justice Department officials to “reach a charging decision on Binance” and “expeditiously conclude” investigations of allegedly illicit activities involving Tether. The two lawmakers’ remarks followed Hamas launching a coordinated attack against Israel on Oct. 7, which they suggested was supported in part by illicit crypto transactions “providing significant terrorism financing.”
“We urge the Department of Justice to carefully evaluate the extent to which Binance and Tether are providing material support and resources to support terrorism through violations of applicable sanctions laws and the Bank Secrecy Act,” said Lummis and Hill. “To that end, we strongly support swift action by the Department of Justice against Binance and Tether to choke off sources of funding to the terrorists currently targeting Israel.”
When it comes to illicit finance, crypto is not the enemy – bad actors are.
I sent a letter asking DOJ to finish its investigation and consider criminal charges against Binance and Tether after reports they served as intermediaries for Hamas and engaged in illicit activities. pic.twitter.com/M3KGNFkpWc
The letter by Lummis, a Bitcoiner and supporter of crypto legislation in Congress, and Hill, the chair of the Subcommittee on Digital Assets, Financial Technology and Inclusion, echoed sentiments expressed by Senator Elizabeth Warren and other lawmakers linking crypto payments to terrorist activities. In contrast to Warren, however, the two Republican lawmakers directed the Justice Department to focus on “bad actors” — in this case, including Binance and Tether.
“[W]e must be careful not to paint all crypto asset intermediaries as suspect when a small handful of bad actors use them for nefarious purposes,” said the letter. “Many crypto asset intermediaries seek to comply with U.S. sanctions and money laundering laws, correctly viewing the regulations as necessary to unlock the promise of crypto assets and distributed ledger technology.”
In the wake of the Oct. 7 attacks, crypto exchange Binance froze accounts linked to Hamas following requests from Israeli law enforcement. However, Lummis and Hill labeled this action as insufficient after the fact, as the exchange allowed terrorist groups to conduct business or was “willfully blind” in doing so. They made similar allegations against Tether for “knowingly facilitating violations of applicable sanctions laws.”
“While some reports claim Binance is now cooperating with Israeli law enforcement, this is immaterial to criminal culpability because Binance is only doing so after knowingly allowing its exchange to be used by terrorist organizations, and only after they have been caught.”
On Oct. 25, blockchain analytics firm Elliptic released a statement directed to U.S. lawmakers and the media saying there was “no evidence” Hamas had received a significant volume of crypto payments to fund its attacks against Israel. Compared to the millions of dollars claimed by other media outlets, Elliptic said one Hamas-linked campaign had raised only $21,000 since the Oct. 7 attack.
New Hampshire has approved the issuance of a $100 million municipal bond backed by Bitcoin, in what appears to be the first structure of its kind at the US state level.
Minutes from a Nov. 17 meeting of the New Hampshire Business Finance Authority (BFA), the state’s business financing agency, show the board planned “to consider approving a resolution authorizing up to $100,000,000 bonds for a project to acquire and hold digital currency.”
Minutes from the following day record that directors voted to “approve the preliminary official intent, with no reservation, to issue a taxable conduit revenue bond for WaveRose Depositor, LLC of up to $100,000,000.”
According to a Wednesday Crypto in America report, the bond is backed by Bitcoin (BTC) and would let companies borrow against overcollateralized BTC held by a private custodian. The state or taxpayers do not back the bond; instead, BFA approves and oversees a private deal, while Bitcoin — reportedly held in custody by BitGo — covers investors.
According to the report, asset manager Wave Digital Assets and bond specialist Rosemawr Management designed the bond to utilize Bitcoin as collateral under the same rules that govern municipal and corporate bonds. Wave co-founder Les Borsai said the goal is to “bridge traditional fixed income with digital assets” for institutional investors.
The New Hampshire State House in Concord. Source: Wikimedia
“We believe this structure shows how public and private sectors can collaborate to responsibly unlock the value of digital assets and digital asset reserves,” he added.
The borrower is expected to post approximately 160% of the bond’s value in Bitcoin as collateral, and if the price of BTC drops below roughly 130%, a liquidation would ensure that bondholders stay whole. According to BFA Executive Director James Key-Wallace, fees from the transaction will fund the local innovation and entrepreneurship program, the Bitcoin Economic Development Fund.
New Hampshire dives headfirst into crypto
The news follows New Hampshire becoming the first US state to allow its government to invest in cryptocurrencies in May after Governor Kelly Ayotte signed a bill allowing the municipality to “invest in cryptocurrency and precious metals.”
New Hampshire is also working on a bill to deregulate local cryptocurrency mining operations. In late October, a committee voted 4–2 to send the measure for further review in an interim study after it had been deadlocked in the State Senate twice.
The local administration is viewed as particularly welcoming to the cryptocurrency industry. In early February, Brendan Cochrane, an Anti-Money Laundering specialist at YK Law in New York City, argued that it could become an alternative for crypto companies relocating to the Bahamas.
The latest moves build on a longer history of crypto engagement. Back in 2015, New Hampshire was already working on a bill that would have allowed the state government to accept tax and fee payments in Bitcoin.
Global bank regulators are preparing to revisit their most stringent crypto rules after the United States and the United Kingdom refused to implement them, a move that threatens to unravel the long-standing consensus of the Basel Committee.
In an interview with the Financial Times, Erik Thedéen, the governor of the Swedish central bank and chair of the Basel Committee on Banking Supervision (BCBS), said they may need a “different approach” to the current 1,250% risk weighting for crypto exposures.
According to global law firm White & Case, the application of the 1,250% risk weight means that credit institutions must hold their own funds of at least equal value to the amount of the respective crypto-asset exposure.
Under the existing framework, crypto assets issued on a permissionless blockchain, which includes stablecoins such as USDt (USDT) and USDC (USDC), receive the same 1,250% risk weighting used for the riskiest venture investments.
However, Thedéen acknowledged that the rapid growth of regulated stablecoins has changed the policy landscape. “What has happened has been fairly dramatic,” Thedéen told the Financial Times, adding that there is a strong increase in stablecoins and that the amount of assets in the system calls for a new approach.
“We need to start analysing. But we need to be fairly quick on it,” Thedéen added, floating questions over stablecoin risks and if there was an argument that could approach the assets in “a different way.”
Explicit resistance from major economies
The resistance felt from major economies is now more explicit. According to the FT report, the US Federal Reserve does not plan to implement the Basel crypto rules as written, with policymakers calling the capital charges unrealistic.
The Bank of England also signaled that it will not apply the framework in its current form. At the same time, the European Union has only partially implemented the 2022 standard, excluding key provisions that cover permissionless blockchains.
Citing anonymous sources, Bloomberg previously reported that the Basel Committee is preparing to revise its 2022 guidance next year to be more favorable to banks participating in crypto markets.
The report said that many banks interpreted the framework as a deterrent to engaging with cryptocurrency or stablecoin services.
The talks reportedly intensified as regulated stablecoins gained traction in the US, supported by US President Donald Trump and the passage of the GENIUS Act, which formally authorized the use of these assets in payments.
Stablecoin boom requires rethink of rules
Thedéen echoed the concerns in the FT report, saying that the increase in stablecoin adoption requires fresh analysis and a potentially more lenient stance.
However, he also said that reaching an agreement may be difficult as regulators are divided on core assumptions about crypto’s risk profile and the role of bank-issued digital assets.
“Going further than that at this point in time is difficult, because I’m the chair and there are so many different views in this committee,” he said
The divergence in policies creates a competitive imbalance for global banks. If EU banks remain bound by these mandates while the US and the UK operate under more lenient frameworks, the playing field becomes significantly tilted.
This imbalance would influence which jurisdictions can build bank-issued stablecoin products, tokenized deposits or even crypto custody solutions.
Ondo Global Markets, a US-based tokenization platform, has received regulatory approval to offer tokenized stocks to European investors.
Liechtenstein Financial Market Authority (FMA) has granted Ondo approval to launch its tokenized stocks and exchange-traded funds (ETFs) in the European Union and the broader European Economic Area (EEA), the company announced on Tuesday.
“With this milestone, more than 500 million investors in 30 European countries can soon access regulated exposure to US markets directly onchain,” Ondo said.
The news came a few weeks after Ondo partnered with Boerse Stuttgart Group’s digital asset arm BX Digital to enable the tokenized stock trading in Switzerland on Nov. 3.
Liechtenstein adopts MiCA despite not being EU member state
Liechtenstein’s approval positions Ondo to offer tokenized stocks and ETFs to retail investors across all 30 EEA countries, including all 27 EU nations plus Iceland, Liechtenstein and Norway.
The regulatory milestone positions Ondo to operate within a “unified, regulated European framework consistent with established investor-protection standards,” the company said.
Ondo did not specify the framework under which it secured approval to offer tokenized stocks in Europe, but highlighted Liechtenstein’s passporting regime, which extends across the EEA.
Following the expiry of the transitional regime on Dec. 31, 2025, crypto asset service providers (CASPs) must hold MiCA authorization from Liechtenstein’s FMA.
Cointelegraph approached Ondo and the FMA for comment regarding the nature of the approval but had not received a response at the time of publication.
The news arrives amid rising tensions within the EU over the extent of supervisory authority that member states should retain under MiCA. According to reports, EU officials are drafting plans to designate the European Securities and Markets Authority as the direct regulator for all CASPs across the bloc.